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HQ PIPELINE WORKSHOP ROME , 10 AND 11 JULY 2002

HQ PIPELINE WORKSHOP ROME , 10 AND 11 JULY 2002. LOANS/BORROWINGS - DIVERSIONS - SWAPS AND TRANSFERS BASIC PRINCIPLES: Collateral available before transaction Mutual agreements between parties Full transparency in all cases Complete records are kept in Country Offices.

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HQ PIPELINE WORKSHOP ROME , 10 AND 11 JULY 2002

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  1. HQ PIPELINE WORKSHOPROME , 10 AND 11 JULY 2002 LOANS/BORROWINGS - DIVERSIONS - SWAPS AND TRANSFERS BASIC PRINCIPLES: Collateral available before transaction Mutual agreements between parties Full transparency in all cases Complete records are kept in Country Offices

  2. 1. LOANS/BORROWINGS (between CP Activities/projects) WITHIN COUNTRY WHY NEEDED: • TO ROTATE STOCKS • TO ENSURE PROPER DISTRIBUTION LEVELS • TO AVOID ‘BACKPAYMENTS’ – not to have problems with government counterparts/implementing partners HOW TO IMPLEMENT: • AT DISCRETION OF COUNTRY DIRECTOR • PROPER DOCUMENTATION • comprehensive files are kept • an updated log-book is kept

  3. 2. LOANS/BORROWINGS BETWEEN PROGRAMME CATEGORIES (I.E. FROM DEV. TO EMOP/PRRO), WITHIN COUNTRY PRINCIPLES • MUTUAL AGREEMENT BETWEEN PROJECT AUTHORITIES AVAILABLE IN WRITING • BOTH LOAN AND REPAYMENT SI AVAILABLE AT THE TIME OF AGREEMENT - to ensure that proper LTSH, DSC and ODOC obtained • DONOR AGREEMENT OBTAINED - obligatory in all cases when direct multilateral resources involved

  4. HOW TO DO ? • Loan agreement is drawn by CO PFP and signed by CD and by Government Counterpart Director(s) • If external transport changes needed, get in touch with OTS • Request to RE to obtain donor consent • indicate quality of food, metric ton and SI number of loan • indicate quality of food, metric ton and SI of repayment • indicate donor contribution numbers • provide timeframe for replacement • state reasons for loan • provide pertinent pipeline report to facilitate communications • RE will ensure: • donor conditions OK • bag markings OK

  5. 3. LOANS/BORROWINGS BETWEEN TWO COUNTRIES (applicable to direct multilateral resources) PRINCIPLES • BASED ON AGREEMENTS BETWEEN THE COs • DONOR CONSENT OBTAINED • IN COLLABORATION WITH REGIONAL BUREAU HOW TO DO: • In collaboration with Regional Bureau, agreement is drawn • Request donor consent from RE by e-mail (cc. ODB P.Off.) • Original Shipping Instruction numbers are applied to all documentation throughout the process • ODP informed to see if alternative solutions can be found.

  6. HOW ARE THE SIs PROCESSED IN LOANS/BORROWINGS SYRIA JORDAN ORIGINAL ALLOCATION OF FOOD SI 80190301 SI 80220203 SYRIA WOULD LIKE TO BORROW THE FOOD FROM JORDAN SI 80190301 SI 80220203 REPAYMENT

  7. 4. DIVERSIONS - changes in external transport needs • ARE TO BE CONSIDERED ONLY IN EXTREME CASES • PROCESS TO OBTAIN DIVERSION REQUIRES PROMPT ACTION BY ALL PARTIES INVOLVED BASIC PRINCIPLES: • based on mutual, written agreement • donor consent obtained • if additional funds required, proper authorization obtained HOW TO DO: • e-mail to RE to request donor consent • OT authorization obtained …. How to do ?

  8. OT AGREEMENT FOR DIVERSIONS MUST BE OBTAINED IN ADVANCE(in most cases, applicable only to charter vessels) • OTS is contacted immediately when diversion considered to ensure feasibility - important as vessel owners must agree • In order for OTS to divert a vessel from its original destination, the following is needed: • Written instruction from Bureau is received • Pertinent SI(s) available • If additional funding required, OTS informed of source • Donor agreement obtained • Memo signed by OT Director

  9. 5. SWAPS • Based on commodity values • If direct multilateral resources involved, donor agreement must be obtained in advance • If multilateral resources involved, ODP to be informed and agreement between projects and project authorities obtained in advance 6. TRANSFERS • In WIS -- feasible and possible • In WINGS -- cumbersome and labor-intensive • If required, all parties to be informed as early as possible • As per Operational Guidance (recently issues), transferring commodity balances from one project to another project phase are not encouraged

  10. LOANS/BORROWINGS, DIVERSIONS, TRANSFERS AND SWAPS ARE HIGHLY DISCOURAGED QUESTIONS/COMMENTS

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